![]() ![]() ![]() That puts Tennessee’s recipiency rate at the 8th lowest in the country ( Figure 2). (12) Historically, the state’s recipiency rate closely mirrored the nation’s. Tennessee’s UI program provided benefits to about 21% of the state’s unemployed workers in the first quarter of 2020. In Tennessee, a worker must have earned at least $780 in each of two quarters within the base period - defined as the first 12 out of 15 months preceding an initial claim. (19) (20) (21) Recipiency Rate The CARES Act eligibility expires on December 31, 2020. (16)Įach person’s eligibility depends on their wages before filing an unemployment claim. Tennessee did not have a similar program in place for the self-employed before Congress passed the CARES Act in March, and no state covered independent contractors. As of 2019, 10 states allowed some self-employed workers to get UI benefits. The federal Coronavirus Aid, Relief, and Economic Security (CARES) Act extended benefits to independent contractors and the self-employed, who usually can’t access UI in Tennessee. Lee signed an executive order making workers ordered to isolate or quarantine due to coronavirus eligible. (18) In Tennessee, “good cause” must be work-related or due to mandatory retirement or sexual or other harassment. (16) (17) In March 2020, Gov. Those who voluntarily leave a job without “good cause” are not eligible. Standard unemployment benefits are reserved for people who - through no fault of their own -lose a job from one of the covered businesses outlined below. Unless we note otherwise, the information here applies to Tennessee’s “standard” criteria as of January 2020 before the coronavirus pandemic. Who Gets Unemployment Benefits in TennesseeĮligibility for unemployment insurance varies significantly by state and is often tweaked during economic downturns. ![]() While benefit claims typically rise during recessions, the surge in UI claims in April, May, and June 2020 far exceeds any other in recent memory ( Figure 1). (1) (11) To prepare for this demand, states set aside money for unemployment compensation during periods of high employment and economic growth. Unemployment insurance is a countercyclical program, meaning more people apply for benefits during economic downturns. (6) (7) (8) (9) The additional benefits currently available from the federal government (discussed below) were, in part, meant to encourage workers to stay home and slow the spread of COVID-19. Some research suggests that longer and/or more generous benefits may increase the duration of unemployment when jobs are readily available, but overall, the evidence is mixed. Unemployment benefits can help to stabilize family finances and economic activity but may also discourage quick re-employment in certain situations. UI reduces the risk of financial instability for workers and their families, while also keeping consumer dollars flowing through the economy. (3) (4) (5) Like other types of insurance, it is meant to protect against uncertainty. Created in 1935 in the midst of the Great Depression, the program temporarily replaces a portion of worker wages when they lose their jobs. The state-federal unemployment insurance (UI) program is a safety net for both workers and the economy. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |